Intel, a leading semiconductor giant, has revealed plans for significant layoffs within its Foundry division, impacting over 10,000 employees globally. The job cuts, set to begin in July 2025, are part of a broader restructuring effort to streamline operations and reduce costs amid financial pressures.
The layoffs are expected to affect 15-20% of the Foundry workforce, targeting factory workers while aiming to retain critical engineering talent. This move follows Intel's strategy to refocus on core business units and simplify its manufacturing arm into a leaner, more responsive entity.
According to internal communications, the company has ruled out severance packages or voluntary exits, basing the cuts on performance evaluations and investment priorities. This decision has sparked concerns among employees, especially in regions like Oregon, where Intel has a significant presence.
The restructuring comes as Intel faces intense competition in the semiconductor industry and navigates challenges in the wake of the AI boom. Under the leadership of CEO Lip-Bu Tan, the company is prioritizing operational efficiency to maintain its competitive edge.
Industry analysts warn that such drastic cuts could impact Intel’s operational agility and potentially jeopardize federal and state funding tied to its manufacturing expansions. The long-term effects of this decision remain to be seen as Intel balances cost-cutting with innovation.
As the layoffs loom, affected workers and communities brace for the impact, with many questioning the future of Intel’s Foundry division. The semiconductor industry watches closely as Intel embarks on this critical transformation.
Maria Lourdes
